As demand for variety and customization explodes, creating complexity and cost-to-serve for organizations, companies must identify and deliver value to profitable customer segments at an appropriate cost. Micro supply chains are finite, decentralized, agile ‘mini operating models’, with flexible supplier contracts and relationships, and manufacturing closer to the point of purchase.
Every part of the supply chain is potentially open to third-party, ‘as-a -service’ providers, offering enormous opportunity to make supply chains more adaptable and efficient using high-quality expertise, without heavy investment in fixed assets.
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Manufacturers could also become ‘as-a-service’ providers themselves, offering their own capabilities to others to use up spare capacity and build new revenue streams. Managing this expanding network of partners and suppliers calls for a new approach to delivering radical organizational change. However, the rise of platform-based services puts pressure on every organization to decide what they’re really good at – and what can best be done by others.
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